Erin Energy is planning to double production at the Oyo-9 oil well in offshore Nigeria once operations begin at the site.
The firm has finalised its plan to spud Oyo-9 before the end of this month, with Pacific Drilling mobilising its sixth-generation rig Pacific Bora for this task.
Oyo-9 is expected to increase Oyo field production by up to 7,000bpd of oil, which will double the company's current production.
Coinciding with the completion of Oyo-9, the company will also tie back in to its FPSO the Oyo-7 well. This move is expected to add an additional 2,000bpd of oil.
In addition, Erin is negotiating for an extension to the contract with Pacific Drilling to drill one or two wells in the prolific Miocene geological zone located in OML 120, based on the availability of funds.
Erin is producing more than 6,200bpd of oil from its Oyo 8 well.
Erin CEO Femi Ayoade said: "We are pleased with the continued successful production from our Oyo 8 well, now producing over 6,200bpd, and the mobilisation this month of the Pacific Bora rig to drill our Oyo 9 well and also the restart of production from Oyo 7.
“These operations should allow us to meet our short-term goal of more than doubling the Company's current production. Additionally, we believe our greatest shareholder value creation opportunities are in our Miocene exploration prospects where we are working to accelerate the drilling of these prospects in OML 120 and 121.
“The company is also making good progress on restructuring our debt, including the reduction in our accounts payable."
Erin chairman Frank C Ingriselli said: "The drilling and completion of these Oyo wells will add significant cash-flow and reserves to the company and thereby deliver on shareholder value.
"We plan to as soon as possible embark on a campaign of non-deal roadshows and other events and actions so that the marketplace recognises the true value of our world-class assets and that such value is reflected in our share price."